Sam Altman's OpenAI Accuses Nonprofit With Possible Elon Musk Ties Of Misleading Public, Breaking Lobbying Laws

Sam Altman‘s OpenAI has reportedly lodged a complaint against a nonprofit organization, accusing it of violating state lobbying laws and possibly having connections to Tesla Inc. TSLA CEO Elon Musk.

What Happened: OpenAI, the artificial intelligence company, has accused the Coalition for AI Nonprofit Integrity (CANI) of violating California’s lobbying laws, reported Politico on Thursday.

The complaint submitted to the California Fair Political Practices Commission accuses CANI of potentially misrepresenting its leadership and neglecting to disclose lobbying payments tied to a state bill that might have obstructed OpenAI’s shift to a for-profit model.

The complaint, filed on Monday, accuses CANI of breaching the Political Reform Act and calls for an immediate investigation. OpenAI’s attorney, Ann O’Leary, a former chief of staff to Gov. Gavin Newsom, authored the complaint. The AI company suspects that opponents of its restructuring plans, including Anthropic and Musk, have covert ties to CANI.

OpenAI’s legal team alleges to have discovered a link between CANI and a New York-based lawyer who they suspect is a front for the nonprofit. The house rented by this individual is reportedly owned by Tesla Place, LLC, further raising suspicions about potential connections to Musk.

CANI spokesperson Becky Warren has previously refuted any association with Musk and asserted that the group is a grassroots initiative funded by various individuals, including Harvard professor Lawrence Lessig, reported the publication.

OpenAI did not immediately respond to Benzinga's request for comment.

See Also: Trump Administration Sues Gavin Newsom, Other State Officials Over California’s Egg Laws Driving Up Prices Nationwide: ‘Unnecessary Red Tape’

Why It Matters: This latest development adds to the ongoing feud between OpenAI and Musk, who was a co-founder of the company but has since become a vocal critic of its direction. OpenAI’s restructuring plans have been a point of contention, with Musk receiving support from AI experts and former employees to block the transition to a more profit-driven structure.

Earlier in July, OpenAI publicly refuted claims of a partnership with Robinhood regarding “OpenAI tokens,” stating that these tokens are not equivalent to OpenAI equity. Musk, in turn responded to Altman’s statement on this and said, “Your ‘equity’ is fake.”

On the other hand, Altman has accused Musk of using harassment tactics to impede the company’s progress and disrupt its growth plans, including a contentious bid for control.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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